-LRB- CNN -RRB- -- Growing up in Lisbon , I was always pleased to tuck into the little fish pates offered as part of the entrees at my local restaurant . Little did I know , that many years later , this Portuguese staple of sardines would become one of the hooks which would lift the Iberian nation out of recession .

In the second quarter of this year , Portugal 's economy outperformed many other countries in the European Union with growth of 1.1 % , thanks in part to its exports , which rose by more than 5 % .

But the export euphoria was short lived : many knew that behind those chunky fish fillets , Portugal had some economic bones to swallow .

Fish canning factory Conserveira do Sul , is in many ways , an example of Portugal 's economic successes and failures . For more than 30 years , this family-run business in the south of the country has fought crisis after crisis .

As I get a tour of the factory , one of its co-owners , Jorge Ferreira , tells me the company has been in `` pre-alert crisis since the 1970s '' -- a time when the canned fish sector went into a deep crisis and many factories closed .

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This time around however , the crisis has brought him a good economic catch . Ferreira says : `` Our products are low priced and they have been the option for many people who have had their wages reduced , so in the last few years we have observed an increase in the quantity sold of our product . ''

In other words , the business is faring better as the Portuguese turn to a cheaper diet .

But the success of Conserveira do Sul , which produces 12 tons of fish every day , has more to thank than just its domestic market .

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Chinese demand for the product , and two large distribution deals in China , have played a large part in their turnaround .

`` The Chinese are looking for healthy and safe products ... a safe process is very important to the Chinese market because they are very aware of contamination problems , of pollution problems '' says Ferreira .

To secure these key distribution deals , Jorge tells me he shows off the factory -- the canning process , the sterilization of the product and the fresh fish itself , which arrives at the port just outside the factory door -- to Chinese distributors . It 's a move that has brought work and deep sighs of relief to its employees , many of whom have been working here for years .

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Maria is one of them . She has been cleaning , gutting and canning fish since she was 13 . She tells me she has plenty of work . Inside the factory she can not feel the crisis ; outside however , it 's a different matter .

Therein lays Portugal 's economic predicament . While those traditional exports of fish and olive oil offered a ray of hope in the second quarter , they were not the country 's saving grace , with some arguing the numbers were simply an anomaly . The coalition government may have known that it was too early to call this a turnaround , because they did little to play off these numbers .

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Ricardo Marques , an economist at Informacao dos Mercados Financeiros , tells me over a coffee that we are `` seeing an improvement in Portugal 's economy but as long as austerity is being implemented the people on the street will never feel the benefits '' .

There is certainly more austerity to come . The government of Prime Minister Pedro Passos Coelho has been unable to persuade the International Monetary Fund , the European Commission and the European Central Bank to ease the country 's deficit target to 4.5 % of GDP from the current 4 % goal .

As a result the government is expected to reveal a new batch of austerity measures when it announces its budget on October 15 . These are expected to include more unpopular public sector job cuts , cuts to pensions and benefits and plans to raise the retirement age to 66 .

But this wo n't be easy .

There is a political crisis inside the governing coalition , the Constitutional Court has ruled four times against the governments ' plans to trim public sector pay and recently there were whispers of a second bailout .

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The Troika , which was visiting the country when I was there , was quick to deny the murmurs of another crisis , issuing a statement which said that Portugal 's bailout program `` remains broadly on track , with the authorities determined to achieve its objectives . ''

There is no doubt that there 's an improvement in the Portuguese economy . There are reasons to be optimistic . But let 's not start popping the champagne just yet . For now , pate and bread may be the most appropriate economic aperitif .

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The Portuguese government has been unable to convince creditors to ease its deficit reduction targets

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Chinese fish demand has played a large part in Conserveira do Sul 's turnaround

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Creditors issued a statement which said that Portugal 's bailout program `` remains broadly on track